Sweeping changes for workers & retirees - Egypt's new labor and social insurance laws

Egypt Independent

17-05-2025

President Abdel Fattah al-Sisi has ratified the new Labor Law, a significant step towards solidifying workers' rights and fostering a fair work environment across all sectors, particularly in the private sector.
The law aims to provide comprehensive protection for workers, with a focus on the rights of working women and people with disabilities, and to bolster their professional and social stability. Key Highlights of the New Labor Law
Article (70) stipulates the right of working women, in both the public and private sectors, to maternity leave of three months with full pay, granted to them three times throughout their period of service.
Furthermore, the daily working hours for pregnant women are reduced by one hour starting from the sixth month of pregnancy, with a ban on their working overtime during pregnancy and up to six months after childbirth.
According to Article (72), working women in establishments employing 50 or more workers are entitled to unpaid leave to care for their child for a period of up to two years, for a maximum of three times during their employment.
They may choose to receive compensation equivalent to 25 percent of their salary during this leave. Abolishing arbitrary dismissal
The new Labor Law has eliminated the use of Form #6 which was often exploited as a tool for the arbitrary dismissal of employees. This is considered a major achievement, as it strengthens job security and prevents unjustified termination. Formalizing Hiring and Termination Procedures
The new Labor Law mandates that employers document all hiring and termination procedures in official employment contracts. This prevents legal loopholes and promotes transparency in the contractual relationship between employees and employers. Pension Eligibility Requirements
The new Social Insurance Law outlines the conditions for pension entitlement, including: Reaching retirement age, with a contribution period of at least 180 months (of which at least 120 months must be actual employment).
Death, total disability, or permanent partial disability, provided there is no alternative job opportunity approved by a decision from a specialized committee.
In the event of death or disability occurring during employment or within one year of termination of service, the conditions are that the retirement age has not been exceeded and a lump-sum compensation has not been received.
After one year has passed since the end of service, a contribution period of at least 180 months is required, along with the same conditions mentioned above.
Edited translation from Al-Masry Al-Youm